Back to top

Analyst Blog

Liberty Media Corp. (LMCA - Analyst Report), which owns 53% of Sirius XM Holdings Inc. (SIRI - Analyst Report), has called off its plan to buy the rest of the shares of the satellite-radio provider. Meanwhile, Liberty Media announced the formation of two tracking stocks, one to be named as Liberty Media Group while the other will be Liberty Broadband Group.

In Jan 2014, the Liberty Media expressed its desire to take full control of SIRIUS XM Radio, in a deal worth more than $10 billion.

Liberty Media’s tracking stock group, Liberty Broadband Group, will comprise the company’s 27% stake in Charter Communications, Inc. (CHTR - Analyst Report), 1% stake in Time Warner Cable Inc. (TWC - Analyst Report), its subsidiary TruePosition and other investments. The second tracking stock group will consist of the SIRIUS XM stake and interests in other media and entertainment businesses.The present Liberty Media stockholders will gain one Liberty Media Group share and four shares of Liberty Broadband Group along with the right to more cable stocks.

Liberty Media is aggressively pursuing the idea of Charter Communications acquiring Time Warner Cable, the second largest cable MSO (multi service operator) in the U.S. However, Charter Communications has lost to Comcast Corp. in its bid to acquire Time Warner Cable.

In the recently concluded quarter, Liberty Media reported mixed financial results. Earnings came in above the Zacks Consensus Estimate whereas revenues lagged the same. Liberty Media generated $358.6 million of cash from operations compared with $293.2 million in the prior-year quarter. Free cash flow in the reported quarter was $303.27 million against $269.5 million in the year-ago quarter.

Liberty Media currently has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%